Valero Energy (NYSE:VLO) Posts Earnings Results, Beats Estimates By $1.06 EPS

Valero Energy (NYSE:VLO) posted its quarterly earnings results on Thursday. The oil and gas company reported $4.22 earnings per share for the quarter, topping analysts’ consensus estimates of $3.16 by $1.06, Zacks reports. The business had revenue of $32.38 billion for the quarter, compared to analysts’ expectations of $31.38 billion. Valero Energy had a net margin of 1.91% and a return on equity of 12.35%. The business’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.89 EPS.

Here are the key takeaways from Valero Energy’s conference call:

• Valero delivered a strong Q1 with net income attributable to stockholders of $1.3 billion ($4.22/share) and $1.8 billion of refining operating income, reversing last year’s loss across the business segments.
• Management emphasized operational flexibility—an advantaged Gulf Coast slate that can run discounted heavy sour crudes and a record monthly jet yield in March—which, together with tight global product inventories, should support margins.
• A March Port Arthur fire damaged the diesel hydrotreater (and affected an adjacent kerosene unit), leading to reduced rates, uncertain repair timing, and potential incremental 2026 capex (expected to be insured subject to deductibles) that could weigh on near?term capture rates.
• Financial strength and shareholder returns remain priorities—Valero opportunistically issued $850 million of 10?year notes, ended the quarter with $5.7 billion cash (net debt-to-cap ~18%), raised the dividend 6%, and returned $938 million to shareholders in Q1.

Valero Energy Stock Down 2.2%

NYSE:VLO traded down $5.46 on Friday, hitting $247.12. 2,478,617 shares of the company’s stock traded hands, compared to its average volume of 3,725,260. The company has a current ratio of 1.64, a quick ratio of 1.11 and a debt-to-equity ratio of 0.36. Valero Energy has a 1 year low of $114.76 and a 1 year high of $258.43. The firm has a 50-day moving average price of $232.26 and a 200-day moving average price of $196.27. The company has a market cap of $73.90 billion, a PE ratio of 32.35, a price-to-earnings-growth ratio of 0.41 and a beta of 0.62.

Analyst Upgrades and Downgrades

Several research firms recently commented on VLO. JPMorgan Chase & Co. raised their price target on shares of Valero Energy from $197.00 to $200.00 and gave the company an “overweight” rating in a report on Thursday, January 8th. TD Cowen increased their price objective on shares of Valero Energy from $247.00 to $255.00 and gave the company a “hold” rating in a research report on Monday. The Goldman Sachs Group increased their price objective on shares of Valero Energy from $203.00 to $237.00 and gave the company a “buy” rating in a research report on Thursday, March 12th. BMO Capital Markets increased their price objective on shares of Valero Energy from $230.00 to $270.00 and gave the company an “outperform” rating in a research report on Monday, April 6th. Finally, Wells Fargo & Company raised their price target on shares of Valero Energy from $220.00 to $292.00 and gave the stock an “overweight” rating in a research report on Tuesday, March 31st. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $236.71.

Valero Energy News Summary

Here are the key news stories impacting Valero Energy this week:

• Positive Sentiment: Q1 earnings and revenue beat — Valero reported $4.22 EPS and $32.38B revenue, a sharp rebound from a loss a year earlier as refining and renewable diesel margins surged; the print topped Street estimates and was accompanied by a positive press release. Valero Energy Reports First Quarter 2026 Results
• Positive Sentiment: Operational strength — Valero plans to run its 13 refineries in the U.S. and U.K. at up to 95% of combined throughput (~3.0M bpd) in Q2, supporting margin capture and free cash flow potential. Valero to run refineries up to 95% capacity in Q2 2026, conf call
• Positive Sentiment: Analyst revisions — Erste Group lifted FY2026 and FY2027 EPS forecasts materially, reflecting the stronger margin outlook and boosting earnings estimates. (Analyst note summarized in coverage)
• Neutral Sentiment: Long-term value view — Zacks highlights Valero as a top value stock for long-term investors based on style scores; useful for buy-and-hold thesis but less relevant to intra-day moves. Why Valero Energy (VLO) is a Top Value Stock for the Long-Term
• Negative Sentiment: Sector headwinds and macro uncertainty — Broader “Big Oil” commentary warns of a tug-of-war (geopolitical news, margins volatility) that could keep energy stocks volatile and cap multiple expansion despite Valero’s beat. Big Oil Earnings Set To Sharply Decline. Blame This Tug-Of-War.
• Negative Sentiment: Near-term profit-taking risk — After a significant run toward a 52-week high, traders may be trimming positions, contributing to the pullback despite strong fundamentals. (Market technical/flow effect)

Insider Activity

In related news, SVP Eric A. Fisher sold 400 shares of the business’s stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $238.60, for a total value of $95,440.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.36% of the stock is currently owned by corporate insiders.

Institutional Trading of Valero Energy

Large investors have recently bought and sold shares of the stock. JPL Wealth Management LLC bought a new stake in shares of Valero Energy during the third quarter worth $27,000. Triumph Capital Management bought a new stake in shares of Valero Energy during the third quarter worth $35,000. IFC & Insurance Marketing Inc. bought a new stake in shares of Valero Energy during the fourth quarter worth $41,000. Osterweis Capital Management Inc. grew its holdings in shares of Valero Energy by 7,180.0% during the second quarter. Osterweis Capital Management Inc. now owns 364 shares of the oil and gas company’s stock worth $49,000 after purchasing an additional 359 shares during the last quarter. Finally, DV Equities LLC bought a new position in Valero Energy in the fourth quarter valued at about $70,000. 78.69% of the stock is currently owned by institutional investors.

About Valero Energy

Valero Energy Corporation is a San Antonio, Texas–based integrated downstream energy company that manufactures and markets transportation fuels, petrochemical feedstocks and other industrial products. The company’s operations focus on refining crude oil into finished fuels such as gasoline, diesel and jet fuel, as well as producing asphalt and other refined product streams for commercial and industrial customers.

In addition to refining, Valero has significant operations in renewable fuels, including the production of ethanol and other biofuels, and it manages an extensive logistics network of pipelines, terminals, rail and marine assets to move feedstocks and finished products.